BAPCPA Rules Effects on Filing for Bankruptcy
You may wonder about the need for credit counselling and debtor education course in order for you to receive a bankruptcy discharge. The purpose of this requirement is to educate you and help you avoid future financial difficulties. There are new rules that applying to the organizations which are providers of credit counselling and debtor education courses. This article will discuss some of these new rules and their impact on your filing for bankruptcy.
In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which is a set of rules which made it harder to file any type of bankruptcy. The reason behind for BAPCPA is that congress believed that too many people who were financially capable of repaying the debts were resorting to bankruptcy instead, so as to have their debt discharged. Therefore, the credit counseling gives an outside opinion on whether a debtor really needs to file for bankruptcy or could make debt repayment by the way of a repayment plan; hence, the Act’s added requirements for debtors to perform before filing for and receiving their bankruptcy discharge. One of these changes is the need for a debtor to complete both a pre-bankruptcy credit counseling workshop and a pre-discharge educating course. Such education is provided by an approved U. S. Trustee’s office agency for counseling. The credit counseling workshop is intended to give the debtor a better idea as to how to create a manageable budget based on his or her finances and also provides potential alternatives to bankruptcy. The pre-discharge debtor education course educates bankruptcy filers about financial management and also includes an examination upon completion. The ultimate goal of the course is to help the debtor avoid financial trouble in the future.
The courses are provided and administered by private companies. Upon completion a certificate is awarded and is to be filed with your bankruptcy case documents so as to show your compliance. Some of the new rules have to do with the internal structure of the course administrator and other matters that affect consumers, some of these are:
Are you considering bankruptcy? To know bankruptcy lawyer cost contact renowned law firm for a free case evaluation.
For bankruptcy lawyers in Phoenix, the author of this article recommends the Pew Law Center.
In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which is a set of rules which made it harder to file any type of bankruptcy. The reason behind for BAPCPA is that congress believed that too many people who were financially capable of repaying the debts were resorting to bankruptcy instead, so as to have their debt discharged. Therefore, the credit counseling gives an outside opinion on whether a debtor really needs to file for bankruptcy or could make debt repayment by the way of a repayment plan; hence, the Act’s added requirements for debtors to perform before filing for and receiving their bankruptcy discharge. One of these changes is the need for a debtor to complete both a pre-bankruptcy credit counseling workshop and a pre-discharge educating course. Such education is provided by an approved U. S. Trustee’s office agency for counseling. The credit counseling workshop is intended to give the debtor a better idea as to how to create a manageable budget based on his or her finances and also provides potential alternatives to bankruptcy. The pre-discharge debtor education course educates bankruptcy filers about financial management and also includes an examination upon completion. The ultimate goal of the course is to help the debtor avoid financial trouble in the future.
The courses are provided and administered by private companies. Upon completion a certificate is awarded and is to be filed with your bankruptcy case documents so as to show your compliance. Some of the new rules have to do with the internal structure of the course administrator and other matters that affect consumers, some of these are:
- Protection of your financial information - there is need for consumers to give the course providers private financial information. The new rules strictly prohibit the course provider from selling or disbursing such information without your express approval. Such approval must be in writing. The rules also prohibits the course provider from soliciting you with offers and ads based on your information.
- Disclosure rate - the new rules require that the course administrators inform you of how much they charged the attorney for you to take the course.
- Information tailor-made for you - the debtor education and financial counseling must provide information specific to each customer’s situation. Therefore, there will be an actual analysis of each debtor with an evaluation specific to his or her situation. In the event that a consumer fails the course examination, the administrator must contact the consumer by email or phone.
Are you considering bankruptcy? To know bankruptcy lawyer cost contact renowned law firm for a free case evaluation.
For bankruptcy lawyers in Phoenix, the author of this article recommends the Pew Law Center.
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